The Palatka daily news. (Palatka, Fla.) 1884-1888, 1887-04-08
COMPETITION OF THE SUEZ CANAL
WITH PACIFIC RAILROADS.


Steamboat Association. setting forth
that certain competitive points had beeI
inadvertently omitted in their first petit
ton have to-day ordered that the follow
ing points. to-wit: Pittsburg. Richmond
and West Point. Va: Raleigh, Charlotte
and Fayetts vile, n. c.: jacksonville
| Fla; Florence, 5. c.: TarbOrO, Colds
bOro and New Haven, n. c.. Knoxville
Tenn; Columbus. Miss; Williamson.
n. c.; Charlottesville. Va; and George
| town, S. c.. be inserted in the order pro-
mulgated yesterday as points from and
| to which longer rates may be chargyd
than from and to local and intermediate
points.
The following correspondence fully ex-
plains itself:
SAN FRANCISCO, April 4. 1887.
To Judge 7. w. Cooley, Chairman:
The question is before us in the com
petition with the Suez Canal Nor business
with China and Japan. whether we can
make a competing line through to At
lantic ports at less rates than local rates
charged, say from San Francisco to New
York, the line from China and Japan
being a continuous one in connection
with the Central Pacific and Union Pa
cific railways. The question is also be-
fore us of working in competition with
the Cape Horn and Isthmus of Panama
routes. A railroad rate that permits of
shipments between San Francisco and
Atlantic ports those rates. to meet COM
petition, being necessarily lower for a
longer distance than those charged for a
shorter, and far below what would
be reasonable for the service per
formed. We cOnstrue the fourth
section of the Interstate Commerce
act practically to he in substance the
application to Interstate Commerce
of the common law principle that the
shipper shall avail himself of competi-
ton. and that less may he charged for
longer than shorter distance. providing
more could not he obt lined. If the right
of competition is recognized As between
the carrier and the shipper our carrying
business will not be interrupted, but
otherwise we shall be unable to compete
for the Chinese and Japanese trade with
the Suez Canal. and also unable to COM
pete with water routes by Panama and
Cape Horn for business originating in
California. We await your construc-
ton. LELAND STANFORD,
President Southern Pacific Railroad.
WASHINGTON. April >.
To Leland stanford, San Francisco:
Applications to the Commission for
special exception under the Interstate
Commerce law can only be granted after
investigation as to the facts. A verified
petition setting fourth the grounds Of ap-
plication should be presented.
T. NJ. COOLEY,
Chairman.
SAN FRANCISCO, April q.
To Judge J. N. Cooley, Chairman, Washington:
We donot ask for a ruling upon a spec
ial case but for construction Of Section
Four, as all business between Pacific and
Atlantic ports is governed by competition.
Business from ports Of China and Japan
across the continent to Atlantic ports is
governed by competition and agents in
China and Japan. to obtain business,
make rates to meet the competition of
the Suez canal. One of the Oriental and
Occidental cOmpany's ships will arrive
in a few days with a cargo mostly for
points east Of the Rocky Mountains.
If the rates established by other compan-
les are maintained the contracts made
for shipment cannot be carried out. All
the through business of the overland
lines is involved and we cannot accept
and despatch freight except upon the
general ruling applicable to all business.
The question arises upon every ton Of
freight offered for shipment and practi-
cally we find Ourself unable to do a
through business. You will see there
fore that a special ruling or exception
will not meet the case as it arises upon
every ton of freight offered.
(Signed) LELAND STANFORD.
WASHINGTON. April :.
To Leland stanford. San Francisco:
The Commission were under no mis-
apprehension regarding the facts, but
they still hold that if. rather than take
the responsibility of your own construc-
ton you call for authoritative action the
case must be formally presented by peti-
ton and then investigated by them.
T. NJ. COOLEY, Chairman.
ANOTHER ORDER OF SUSPENSION.
The Commission has made an order
similar To the one in the case of the
Southern Railway and Steamship Asso-
citation allowing a temporary suspension
Of Section 4. the long and short haul
section. to the Detroit. Grand Haven
and Milwaukee Railroad Company, 50
far as it applies to traffic across Lake
Michigan to Grand Haven. destined To
points east Of the Detroit and st. Clair
rivers, the traffic being carried on in the
company's boats. the company being
allowed by its competitors to charge a
less rate for such traffic.
The application Of the steamship lines
and merchants Of Boston asking the
Commission to authorize the trunk lines
Of railroads from Chicago to Boston to
continue the export trade on the same
basis rs heretofore, giving equal rates to
New York and on all merchandise ex-
ported has been referred to Commission
er Walker for investigation.
The Commission will take a recess
from to-day, until Friday Of next week.
during which time Commissioner
Walker will visit Boston and examine
into the matter.